Key takeaways
- ETH is trading around $4,000 per coin, down about 1.7% over the past 24 hours.
- The leading altcoin could soon rally toward $4,300 amid choppy price action.
Ethereum Foundation deploys 2,400 ETH and $6 million to Morpho
Ether, the second-largest cryptocurrency by market capitalization, has underperformed over the past 24 hours despite the Ethereum Foundation announcing an expansion of its DeFi support with a deployment to Morpho.
On Wednesday, the Ethereum Foundation said it would deploy 2,400 ETH—roughly $9.3 million—and $6 million in stablecoins to the decentralized finance (DeFi) lending protocol Morpho.
The Foundation added that the funds will be placed into Morpho vaults that accrue yield, as part of an effort to broaden its recent financial strategy. In its announcement, the EF stated:
“Morpho is a pioneer in permissionless DeFi protocols and consistently demonstrates a commitment to the principles of Free/Libre Open Source Software (OSS). OSS/FS licensing ensures creators can freely fork and build on existing protocols, making the DeFi ecosystem more resilient and permissionless.”
The Ethereum Foundation is a non-profit organization that oversees research and protocol upgrades for the Ethereum blockchain. The foundation currently holds approximately $823 million worth of ETH in its treasury.
ETH could reclaim $4,300 as price action remains volatile
The 4-hour ETH/USD chart remains bearish and choppy, reflecting the fragmented price action seen over recent days. Volatility contributed to $124.7 million in liquidations for Ethereum futures in the past 24 hours, plus an additional $77.1 million in long liquidations.
Momentum indicators are weak at present but could shift bullish if market sentiment improves. ETH lost support at $4,100 on Wednesday after reaching $4,300 earlier in the week.
The RSI sits at 47, below the neutral 50 level, suggesting bears may be losing grip on the market. MACD lines are also in negative territory after flashing a sell signal earlier in the week.
If the bearish trend continues, ETH could decline toward support near $3,470 in the coming hours. However, if bulls defend the $4,000 level, the token could consolidate and move back toward the $4,300 resistance. A sustained rally would place the 4-hour trendline quarter (TLQ) at $4,513 back in focus.